The Biden administration has extended the deadline for Nippon Steel to abandon its US$14.9 billion bid for U.S. Steel until June 18, which provides time for the courts to review a legal challenge filed by the steelmakers against Biden’s decision to block the acquisition on national security grounds.

Both Biden and President-elect Donald Trump opposed the acquisition. U.S. Steel and Nippon Steel argued that the Committee on Foreign Investment in the United States (CFIUS) review was prejudiced and unfair. They seek a federal appeals court to overturn the decision and allow a new review.

Japan’s foreign minister Takeshi Iwaya expressed regret over the decision, emphasizing the importance of the US-Japan alliance and urging the US to address concerns in the business community.